Australian Wool Market Down Again
April 12, 2019
In what is becoming a familiar pattern, the Australian wool market lost further ground in Week 41 on the back of an ever-increasing selection of lower-yielding, lesser-style wools.
Brokers are reporting a sharp decline in shearing activity. The national quantity decreased slightly this week, as 37,527 bales were available to the trade. Although the overall quantity decreased only slightly, the weekly offering in the North was the smallest sale since AWEX began (since 1995).
Perhaps because of the smaller selection, the Sydney market recorded the smallest losses as buyers fought hard for a limited quantity. The market started the calendar year strongly as the AWEX Eastern Market Indicator rose for seven weeks in a row, adding 165 cents during that period. After losing 7 cents for this series – to close the week at 1,936 Australian cents – the EMI has now fallen for seven consecutive weeks, losing a total of 91 cents.
The EMI hadn’t fallen for seven successive weeks since November 2003. Despite the long run of losses, the EMI is still 57 cents above where it was at the beginning of the year. The crossbreds continue to defy the overall trend of the market, recording gains again this week. Twenty-five through 30.0 micron generally rose by 20 to 30 Australian cents. The Micron Price Guide for 28.0 micron reached a new record in the South on the back of these rises.
The increases in crossbred prices, prevented the EMI from falling further than it did. The Western Indicator does not include crossbred types – this explains why the Western Region Indicator recorded more substantial losses than the East.